§ 54-59. Basis, amount, and payment of retirement income.

(a)

Basis of retirement income. Basic compensation shall generally be based on the amount actually paid or made available to the participant during the limitation year. The limitation year shall be the plan year. The basic compensation of each participant is taken to account for determining the benefits not exceed the annual compensation limit under Code subsection 401(a)(17), as in effect on the first of the limitation year. This limit shall be adjusted by the Secretary of the Treasury to reflect increases in the cost of living, as provided in Code Subsection 401(a)(17)(B); provided, however, that the dollar increase in effect on January 1 of any calendar year is effective for limitation year beginning is such calendar year. If the plan determines basic compensation over a limitation that contains fewer than 12 calendar months (a "short limitation year"), then the compensation limit for such "short limitation year" is equal to the compensation for the calendar year in which the "short limitation year" begins multiplied by the ratio obtained by dividing the number of full months in the "short limitation year".

(b)

Normal retirement date and normal retirement income. Normal retirement under the plan is retirement from the service of the city on, or after, the normal retirement date. In such event, payment of retirement income will be governed by the following provisions of this section:

(1)

Normal retirement date. The normal retirement date of each participant will be the first day of the month coincident with, or next following, the date he both attains the age of 55 and completes ten years of creditable/credited service or has completed 25 years of creditable/credited service at any age provided, however, that a participant may continue in the service of the city beyond his normal retirement date. A participant who meets the requirements of this subsection (b)(1) shall be 100 percent vested.

(2)

Amount of normal retirement income.

a.   

To participant who retires on normal retirement date: The amount of monthly retirement income payable to a participant who retires on his normal retirement date shall be the sum of an amount equal to two percent of final monthly compensation multiplied by his number of years of credited service prior to the date this article is adopted and an amount equal to two and one-half percent of final monthly compensation multiplied by his number of years of credited service on and after the date this article is adopted.

b.

To participant who retires after normal retirement date: A participant who retires after his normal retirement date will, upon actual retirement, be entitled to receive a monthly retirement income, or, if an optional form of payment is in effect pursuant to subsection (f) of this section, a retirement benefit, the single sum value of which (in either case), at his actual retirement date, equals the sum of (i) the single sum value as of his normal retirement date of the normal monthly retirement income to which he was entitled on his normal retirement date, where such normal monthly retirement income shall be computed as of his normal retirement date in accordance with the provisions of subsection (b)(2)a. of this section, based upon his number of years of credited service and his rate of final monthly compensation as of such date, and (iii) the amount of interest on such single sum value in (i) above, where the interest shall be compounded annually from the participant's normal retirement date to his actual retirement date, where all computations shall be on the basis of the interest and mortality assumptions used for the actuarial valuation coincident with, or next preceding, the participant's normal retirement date.

(3)

Normal form of retirement income. The monthly retirement income payable in the event of normal retirement will be payable on the first day of each month. The first payment will be made on the participant's normal retirement date, or, if the participant retires after his normal retirement date, the first payment will be made on the first day of the month coincident with, or next following the date of his actual retirement. The last payment will be the payment due next preceding the retired participant's death except that, in the event the firefighter or the police officer dies after retirement but before he or she has received retirement benefits for a period of ten years, the same monthly benefit will be paid to the beneficiary (or beneficiaries) as designated by the firefighter or the police officer for the balance of such 10-year period, or, if no beneficiary is designated, to the estate of the police officer, as provided in F.S. § 185.162. If a police officer continues in the service of the city beyond his or her normal retirement date and dies prior to the date of actual retirement, without an option made pursuant to F.S. § 185.161, being in effect, monthly retirement income payments will be made for a period of ten years to a beneficiary (or beneficiaries) designated by the police officer as if the police officer had retired on the date on which death occurred, or, if no beneficiary is designated, to the estate of the police officer, as provided in F.S. § 185.162. If a firefighter continues in the service of the municipality or special fire control district beyond his or her normal retirement date and dies prior to his or her date of actual retirement, without an option made pursuant to F.S. § 175.171 in effect, monthly retirement income payments will be made for a period of ten years to a beneficiary (or beneficiaries) designated by the firefighter as if the firefighter had retired on the date on which his or her death occurred.

(c)

Early retirement. A police officer or firefighter who participates in the plan for ten continuous years of creditable/credited service may retire with the consent of the city at any time after he has attained the age of 50 and shall be entitled to early retirement as provided under F.S. ch. 175 and 185.

(1)

Early retirement date. The first day of the calendar month coincident with or immediately following the date a police officer or a firefighter retires from the service of the city under the provisions of this section prior to his or her normal retirement date.

(2)

Early retirement benefit. The monthly amount of retirement income payable to a police officer or firefighter who retires prior to the normal retirement date shall be an amount equal to such equivalent creditable/credited service under a normal retirement reduced by 3 percent for each year by which the police officer's or firefighter's age at retirement preceded the police officer's or firefighter's normal retirement age.

(3)

Early retirement benefit commencement. The monthly retirement income payable in the event of early retirement shall commence on the first day of the calendar month coincident with or next following the police officer's or firefighter's early retirement date.

(d)

Disability retirement and retirement income.

(1)

Disability retirement. A participant having ten or more years of creditable/credited service, or a participant who becomes totally and permanently disabled in the line of duty, regardless of length of service, may retire from the service of the city under the plan if, prior to his normal retirement date, he becomes totally and permanently disabled as defined in subsection (d)(2) of this section on or after the effective date of the plan. Such retirement shall herein be referred to as "disability retirement." The provisions for disability other than line-of-duty disability shall not apply to a member who has reached normal retirement age. However, a participant having less than ten years of creditable/credited service, who becomes totally and permanently disabled as defined in subsection (c)(2) of this section on or after the effective date of the plan not in the line-of-duty, may be eligible to receive a lump sum payment equal to the actuarially reduced vested normal retirement benefit based on the participant's creditable/credited service.

(2)

Disability retirement eligibility. A participant will be considered totally disabled if, in the opinion of the board of trustees, he is wholly prevented from rendering useful and efficient service as a firefighter or police officer; and a participant will be considered permanently disabled if, in the opinion of the board of trustees, he is likely to remain so disabled continuously and permanently

(3)

Exclusions for disability retirement. A participant will not be entitled to receive any disability retirement income if the disability is a result of:

a.

Excessive and habitual use by the participant of drugs, intoxicants or narcotics.

b.

Injury or disease sustained by the participant while willfully or illegally participating in fights, riots, or civil insurrections or while committing a crime.

c.

Injury or disease sustained by the participant while serving in any branch of the Armed Forces.

d.

Injury or disease sustained by the participant after his employment has terminated.

e.

Injury or disease sustained by a police officer or firefighter while working for anyone other than the city and arising out of such employment. If so while working the police officer commences the exercise of police powers and/or duties thence becomes disabled, the disability shall be deemed to be in the line of duty. This provision does not apply to firefighters under the plan.

No participant shall be permitted to retire under the provisions of this section until he is examined by a qualified physician or surgeon, to be selected by the board of trustees for that purpose, and is found to be disabled in the degree and in the manner specified in this section. Any participant retiring under this section may be examined periodically by a duly qualified physician or surgeon or board of physicians and surgeons, to be selected by the board of trustees for that purpose, to determine if such disability has ceased to exist.

(4)

Disability retirement income. The benefits payable to a participant who retires from the service of the city due to total and permanent disability as a direct result of a disability commencing prior to his normal retirement date is the monthly income payable for ten years certain and life for which, if the participant's disability occurred in the line of duty, his monthly benefits shall be the accrued retirement benefit, but shall not be less than 42 percent of his average monthly salary at the time of disability. If after ten years of service the disability is other than in the line of duty, the participant's monthly benefit shall be the accrued normal retirement benefit, but shall not be less than 25 percent of his average monthly salary at the time of disability.

(5)

Payment of disability retirement income. The monthly retirement income to which a participant is entitled in the event of his disability retirement shall be payable on the first day of the first month after the board of trustees determines such entitlement. However, the monthly retirement income shall be payable as of the date the board determines such entitlement, and any portion due for a partial month shall be paid together with the first payment. The last payment will be, if the participant recovers from the disability prior to his normal retirement date, the payment due next preceding the date of such recovery or, if the participant dies without recovering from his disability, the payment due next preceding his death or the 120th monthly payment, whichever is later. Any monthly retirement income payments due after the death of a disabled participant shall be paid to the participant's designated beneficiary (or beneficiaries) as provided in the plan.

(6)

Recovery from disability. If the board of trustees finds that a participant who is receiving a disability retirement income is, at any time prior to his normal retirement date, no longer disabled, as provided herein, the board of trustees shall direct that the disability retirement income be discontinued. "Recovery from disability" as used herein means the ability of the participant to render useful and efficient service as a firefighter or police officer.

(7)

Reemployment by the city. If the participant recovers from disability and reenters the service as a firefighter or police officer, his service will be deemed to have been continuous, but the period beginning with the first month for which he received a disability retirement income payment and ending with the date he reentered the service may not be considered as creditable/credited service for the purpose of the plan.

(e)

Death benefits while in the active service of the city.

(1)

Benefit payable in the event of death while in service on or prior to normal retirement date. If the service of a participant is terminated by reason of his death on or prior to his normal retirement date, it shall be payable to his designated beneficiary, as provided in subsection 54-60(b) hereof, in monthly income, beginning on the first day of the month coincident with, or next following the date of his death, which can be provided by (a) or (b), whichever is greater, where (a) is the single sum value of the participant's deferred monthly retirement income beginning at his normal retirement date which he has accrued to the date of his death, where the amount of such accrued deferred monthly retirement income shall be computed as for normal retirement under subsection (b)(2)a. of this section, based upon a participant's number of years creditable/credited service and final monthly compensation at the date of his death, and (b) is (i) or (ii), whichever is smaller, where (i) is 120 times his rate of final monthly compensation at the date of his death, and (ii) is 100 times the participant's anticipated monthly retirement income commencing at his normal retirement date. The amount of such accrued deferred monthly retirement income in subsection (a) above, shall be computed as for normal retirement under subsection (b)(2)a. of this section, based upon the participant's number of years of creditable/credited service and final monthly compensation at the date of death. The anticipated monthly retirement income commencing at his normal retirement date in subsection (b)(ii) above, shall be computed as for a normal retirement under subsection (b)(2)a. of this section, based on his anticipated number of years creditable/credited service at his normal retirement date and his projected final monthly compensation at his normal retirement date. The participant's anticipated number of years of creditable/credited service at his normal retirement date shall be determined in accordance with subsection 54-57(c) hereof, based on the assumption that his employment with the city would have continued interrupted from his date of death to his normal retirement date. The participant's projected final monthly compensation at his normal retirement date shall be determined as of the participant's normal retirement date, based on the assumption that the participant's rate of monthly basic compensation as of his date of death would have continued, without change to his normal retirement date. Any participant who joins the plan on or after effective date of these amendments and dies before vesting, the heirs, legatees, beneficiaries, or personal representatives of such deceased participant shall be entitled to the greater of (1) a refund of 100 percent, with interest of no more than five percent as set by the board of trustees at its first quarterly meeting after the adoption of these amendments and as set by the board of trustees at its first quarterly meeting for each year thereafter, of the contributions made to the trust fund by such deceased participant except that the heirs, legatees, beneficiaries, or personal representatives of a deceased participant who was a participant prior to the adoption of these amendments ordinance will receive interest at a rate of 5 percent per annum on the refund or (2) in the event an annuity or life insurance contract has been purchased by the board on such police officer or firefighter, then to the death benefits available under such life insurance or annuity contract subject to the limitations on such death benefits as set forth in F.S. §§ 175.081 and 185.061. If a participant having at least ten years of creditable/credited service dies prior to retirement, his beneficiary is entitled to the benefits otherwise payable to the participant at normal retirement age. Finally, in the event that a death benefit paid by a life insurance company exceeds the limits set forth in F.S. §§ 175.081(6) or 185.061(6), the excess of the death benefit over the limit shall be paid to the trust fund. However, death benefits as provided pursuant to F.S. § 112.19, or any other state or federal law shall not be included in the calculation of death or retirement benefits provided in this plan.

(2)

Benefit payable in event of death while in service after normal or early retirement date. If the service of a participant is terminated by reason of his death after his normal or early retirement date, there shall be payable to his beneficiary, as provided in subsection 54-60(b) hereof, a monthly income beginning on the first day of the month following the date of his death, which can be provided on an actuarially equivalent basis by the sum of (a) the single sum value of the normal or early retirement income (computed as of the participant's normal retirement date) to which he was entitled on his normal or early retirement date, and (b) the amount of interest on such single sum in (a) above, where the interest shall be compounded annually from the participant's normal or early retirement date to the date of his death and all computations shall be on the basis of the interest and mortality assumptions used for the actuarial valuation coincident with or next preceding his normal or early retirement date.

(f)

Vested benefits on termination of employment.

(1)

In the event of the termination of a participant's service prior to his normal retirement date for any reason other than his death or early retirement with the consent of the city and after he has completed five years of creditable/credited service (hereafter referred to as a "terminated participant"), he will be entitled to a monthly retirement income, payable in the normal form, to commence on the first day of the first month after turning at age 55, if he shall then be living, in an amount which can be provided by the product of (a) and (b), accumulated at interest from the date of termination of his service to his normal retirement date, where (a) is the single sum value of the deferred monthly retirement income, beginning at his normal retirement date, which has accrued to his date of termination of service, and (b) is his vested percentage of the single sum value of the accrued deferred monthly retirement income as of the date of termination of service, based upon his number of completed years of creditable/credited service in the plan, whichever is applicable, as of such date and as shown in the schedule below. The amount of such accrued deferred monthly retirement income shall be computed as for normal retirement under subsection (b)(2)a. of this section, based upon the terminated participant's number of years of creditable/credited service and final monthly compensation at the date of termination of his service.

Full Years of Credited Service at Date of Termination	Vested Percentage
4 or less .....	0%
5 .....	50%
6 .....	60%
7 .....	70%
8 .....	80%
9 .....	90%
10 .....	100%

 

(2)

In the event a terminated participant dies prior to the commencement of retirement income at age 55 (without having received, in accordance with subsection (g) of this section, the value of the benefit in subsection(f)(1) of this section), his beneficiary (or beneficiaries) will receive the monthly retirement income, payable for ten years certain and life thereafter and beginning on the first day of the month coincident with, or next following, the date of the terminated participant's death, which can be provided by the single sum value of the accrued retirement income at date of termination of service, accumulated at interest from date of termination to the date of the terminated participant's death. However, death benefits as provided pursuant to F.S. § 112.19, or any other state or federal law shall not be included in the calculation of death or retirement benefits provided under this plan.

(3)

If a terminated participant's service with the city is terminated while he is entitled to the retirement income described in subsection (f)(1) of this section, and he subsequently reenters the service of the city, he will be entitled, upon such reentry, to the credited service he had on the date of termination of his service, in lieu of the benefits to which he was entitled on such date under subsection (f)(1) of this section; provided, however, that the monthly retirement income payable to such terminated participant commencing at normal retirement date shall not be less than the amount to which he was entitled under subsection (f)(1) of this section prior to his reentry into the service of the city. Except as provided in subsection (d) of this section with respect to disability retirement, any other terminated participant will, on reentry into the service of the city (unless he has been on a leave of absence pursuant to the provisions of subsection 54-57(b) hereof, be treated as if he then first entered the service of the city.

(4)

No terminated participant shall receive credit for years or fractional parts of years of service if he has withdrawn his contributions to the trust fund for those years or fractional parts of years of service, unless the terminated participant pays into the trust fund the amount he has withdrawn, plus interest and administrative costs as determined by the board of trustees. The member shall have 90 days after his reentry into the service of the city to notify the chairman of the board of trustees that he will pay into the trust fund the amount he has withdrawn and to make the payment. This amendment shall apply to all terminated participants who join the plan after the effective date of these amendments and to terminated participants who are participating in the plan as of the effective date of these amendments and who are currently employed on a full-time, permanent basis by the city as of the effective date of these amendments.

(5)

The provisions of subsection (g) of this section, relating to optional forms of retirement income, are applicable to the benefits provided under subsection (f)(1) of this section.

(6)

Except as provide in subsection (b) of this section with respect to normal retirement, subsection (d) of this section with respect to disability retirement, and subsection (e) of this section with respect to death, the terminated participant whose service is terminated prior to the date as of which he has completed five years of credited service shall not be entitled to any benefit under the plan whatsoever, except the return of the terminated participant's contributions with five percent interest thereon. Any terminated participant who joins the plan on or after the effective date of these amendments and leaves the service of the city before accumulating an aggregate time of five years toward retirement and being eligible to retire under the provisions of this plan, such terminated participant shall be entitled to a refund of all his or contributions made to the trust fund with interest of no more than five percent as set by the board of trustees at its first quarterly meeting after the adoption of these amendments and as set by the board of trustees at its first quarterly meeting for each year thereafter, less any benefits paid to him.

(g)

Optional forms of retirement income. In lieu of the amount and form of retirement income payable in the event of normal or early retirement or termination of service, as specified in subsections (b), and (f)(1) of this section, a participant, or a terminated participant as defined in subsection (f)(1) of this section, upon written request to the board of trustees and subject to the approval of the board of trustees, may elect to receive a retirement income or benefit commencing on the date specified in subsections (b), or (f)(1) of this section, whichever is applicable, of equivalent actuarial value, payable in accordance with one of the following options:

Option 1. A retirement income of larger monthly amount, payable to the participant or terminated participant for his lifetime only.

Option 2. A retirement income of a modified monthly amount payable to the participant or terminated participant during the joint lifetime of the participant or terminated participant and a joint pensioner designated by him, and following the death of either of them, 100 percent, 75 percent, 66 2/3 percent, 2/3 , or 50 percent of such monthly amount payable to the survivor for the lifetime of the survivor. The joint pensioner designated by a participant or terminated participant in accordance with this option shall be either (a) the spouse of such participant or terminated participant, or (b) any other person. The monthly income payable under this option to the participant or terminated participant and a joint pensioner designated under (b) above, shall not be less than the monthly income that would be payable under payments certain to age 85 years and life thereafter.

Option 3. Such other amount and form of retirement payments or benefits as, in the opinion of the board of trustees, will best meet the circumstances of the participant or terminated participant. However that if such form is other than a joint and survivor form of retirement payments or benefits, the monthly income payable to a participant or terminated participant under such form shall not be less than the monthly income that would be payable under payments certain to age 85 years and life thereafter.

Actuarial equivalent means a benefit or amount of equal value, based upon the RP2000 Combined Healthy Mortality Table, unisex, and an interest rate of eight percent per annum.

The participant or terminated participant, upon electing any option of this section, will designate the joint pensioner or beneficiary (or beneficiaries) to receive the benefit, if any, payable under the plan in the event of his death and will have the power to change such designation from time to time, but any such change shall be deemed a new election and will be subject to approval by the board of trustees. Such designation will name a joint pensioner or one or more primary beneficiaries where applicable. If a participant or terminated participant has elected an option with a joint pensioner or beneficiary (or beneficiaries) and his retirement income benefits have commenced, he may thereafter change his designated joint pensioner or beneficiary (or beneficiaries) but only if the board of trustees consents to such change and, in the case where the designation to be changed is one involving a joint pensioner, if the joint pensioner last previously designated by him is alive when he files with the board of trustees his request for such change. The consent of a participant or terminated participant's joint pensioner or beneficiary (or beneficiaries) to any such change shall not be required. The board of trustees may request such evidence of the good health of the joint pensioner that is being removed as it may require, and the amount of retirement income payable to the participant or terminated participant upon the designation of a new joint pensioner shall be actuarially redetermined, taking into account the age and sex of the former joint pensioner, the new joint pensioner, and the participant or terminated participant. Each such designation will be made, in writing, on a form prepared by the board of trustees. In the event that no designated beneficiary survives the participant or terminated participant, such benefits as are payable in the event of the death of the participant or terminated participant subsequent to his retirement shall be paid as provided in subsection 54-60(b) hereof.

Retirement income payments will be made under the option elected in accordance with the provisions of this section and will be subject to the following limitations:

(1)

If a participant dies prior to his retirement under the plan, or if a terminated participant dies prior to the commencement of his payments at his normal retirement date, no benefit will be payable under the option to any person, but benefits will be payable as provided in subsections (d) and (e) of this section.

(2)

If the designated beneficiary (or beneficiaries) or joint pensioner dies before the participant's retirement under the plan or subsequent to a terminated participant's date of termination of service but prior to his normal retirement date, the option elected will be canceled automatically and a retirement income of the normal form and amount will be payable to the participant upon his retirement or to the terminated participant at his normal retirement date as if the election had not been made, unless a new election is made in accordance with the provisions of this section or unless a new beneficiary (or beneficiaries) or a joint pensioner is designated by the participant prior to his retirement or by the terminated participant prior to his normal retirement date and within 90 days after the death of the prior beneficiary (or beneficiaries) or joint pensioner.

(3)

If both the (or terminated participant) and the beneficiary (or beneficiaries) designated by him die before the full payment has been affected under any option providing for payments for a period certain and life thereafter, made pursuant to the provision of Option 3, the board of trustees may, in its discretion, direct that the commuted value of the remaining payments be paid in a lump sum and in accordance with sections 54-60(b) and (c) hereof.

(h)

Lump-sum payment of small retirement income. Notwithstanding any provision of the plan to the contrary, if the monthly retirement income payable to any police officer participant or his beneficiary (or beneficiaries) entitled to any benefit hereunder is less than $100.00 or if the single-sum value of the accrued retirement income is less than $2,500.00 as of as the date of his retirement or termination of service, which is applicable, the board of trustees may, in the exercise of its discretion, specify that the actuarial equivalent or such retirement income be paid in a lump sum. Notwithstanding any provision of the plan to the contrary, if the monthly retirement income payable to any firefighter participant or his beneficiary (or beneficiaries) entitled to any benefit hereunder is less than $100.00 or if the single-sum value of the accrued retirement income is less than $5,000.00 as of as the date of his retirement or termination of service, which is applicable, the board of trustees may, in the exercise of its discretion, specify that the actuarial equivalent or such retirement income be paid in a lump sum.

If the participant's lump-sum benefit is $1,000.00 or less, and the participant fails to make a distribution election, the plan will automatically distribute the participant's lump-sum benefit to the participant without their consent.

(i)

Limitation on payment of retirement income. Notwithstanding the fact that the monthly retirement income is payable for life only, if any person receiving a monthly retirement income from the plan should receive, or become entitled to receive, any compensation for personal services currently performed under substantially full-time continuous employment by the city with duties equivalent to those from which the participant has retired under the plan at the regular compensation and is eligible for membership in the plan, the monthly retirement income shall cease during the period for which such compensation is payable except where the participation is part of the city's deferred retirement option plan (DROP), if any. Such monthly retirement income shall, however, be resumed again at the same rate when such compensation thereafter ceases to be payable.

(j)

Technical provisions required by the Internal Revenue Code and Treasury Department regulations.

(1)

Forfeitures. Forfeitures shall not be used to increase the benefits that any participant or terminated participant would otherwise receive under the plan at any time prior to the termination of the plan or the complete discontinuance of contributions to the plan but shall be anticipated in determining the costs under the plan.

(2)

Benefits nonforfeitable if plan is terminated or contributions permanently discontinued. Any provisions of the plan to the contrary notwithstanding, in the event that the plan is terminated or contributions to the trust are completely discontinued, the rights of each participant or terminated participant in the plan to benefits accrued to such date of termination or discontinuance, to the extent then funded, shall be nonforfeitable, and such benefits shall be determined and distributed as provided in subsection 54-62(e) hereof.

(3)

Contribution Limitations. The benefits otherwise payable to a participant or a beneficiary under the plan and, where relevant, the accrued benefit of the participant, shall be limited to the extent required, and only to the extent required by the provision of section 415 of the Code. Section 415 compensation shall include amounts that are not includible in the gross income of the member by reason of Code Sections 125, 132(f)(4) (for plan years beginning on and after January 1, 2001), 403(b) or 457(b) (i.e., cafeteria plan, qualified transportation fringe benefit, 457 plan or 403(b) contributions). To the extent applicable, the provisions of Section 415 of the Code are hereby incorporated by reference into this plan.

Notwithstanding anything in the plan to the contrary, no participant of the plan shall be allowed to receive a retirement benefit or pension which is in part or in whole based upon any service with respect to which the participant is already receiving, or will receive in the future, a retirement benefit or pension from a different employer's retirement fund or plan. This restriction does not apply to social security benefits or federal benefits under Chapter 67, Title 10, U.S. Code.

(k)

Distribution of Benefits. Notwithstanding any other provision of the plan to the contrary, a form of retirement income payable from the plan after the effective date of this revision to the plan, shall satisfy the following conditions:

(1)

If the retirement income is payable before the participant or terminated participant's death,

a.

It shall either be distributed or commence to the participant or terminated participant not later than April 1 of the calendar year following the later of the calendar year in which the participant or terminated participant attains age 70½, or the calendar year in which the participant or terminated participant retires.

b.

The distribution shall commence not later than the calendar year defined above; and a), shall be paid over the life of the participant or terminated participant or over the lifetime of the participant or terminated participant and participant or terminated participant's spouse, issue or dependent, or b), shall be paid over the period extending not beyond the life expectancy of the participant or terminated participant and participant or terminated participant's spouse, issue or dependent.

Where a form of retirement income payment has commenced in accordance with the preceding paragraphs and the participant or terminated participant dies before his entire interest in the plan has been distributed, the remaining portion of such interest in the plan shall be distributed no less rapidly than under the form of distribution in effect at the time of the participant or terminated participant's death.

(2)

If the participant or terminated participant's death occurs before the distribution of his interest in the plan has commenced, the participant or terminated participant's entire interest in the plan shall be distributed within five years of participant or terminated participant's death, unless it is to be distributed in accordance with the following rules:

a.

The participant or terminated participant's remaining interest in the plan is payable to his spouse, issue or dependent;

b.

The remaining interest is to be distributed over the life of the spouse, issue or dependent or over a period not extending beyond the life expectancy of the spouse, issue or dependent; and

c.

Such distribution begins within one year of the participant or terminated participant's death unless the participant or terminated participant's spouse shall receive the remaining interest in which case the distribution need not begin before the date on which the participant or terminated participant would have attained age 70½ and if the spouse dies before the distribution to the spouse begins, this subsection (2) of this section shall be applied as if the spouse were the participant or terminated participant.

(l)

Claims procedures.

(1)

The board of trustees shall establish administrative claims procedures to be utilized in processing written requests ("claims"), on matters which affect the substantial rights of any person ("claimant"), including participant or terminated participants, retirees, beneficiaries, or any person affected by a decision of the board of trustees.

(2)

The board of trustees shall have the power to subpoena and require the attendance of witnesses and the production of documents for discovery prior to and at any proceedings provided for in the board of trustees' claims procedures. The claimant may request in writing the issuance of subpoenas by the board of trustees. A reasonable fee may be charged for the issuance of any subpoenas not to exceed the fees set forth in Florida Statutes.

(m)

Rollovers. Notwithstanding any other provision of the plan to the contrary, a "distributee" may elect, at the time and in the manner prescribed by the plan, to have any portion or all of an "eligible rollover distribution" paid directly to an "eligible retirement plan" specified by the "distributee" in a direct rollover. However, this provision shall not apply if the total "eligible rollover distribution" that the participant is reasonably expected to receive is less than $200.00. For purposes of this section, the following definitions shall apply.

(1)

"Distributee" means a participant or former participant, the participant's surviving spouse, and the participant's spouse or former spouse who is the alternative payee under a domestic relations order, who is entitled to receive a portion of the participant's benefit.

Effective for plan years beginning on and after January 1, 2007, a nonspouse beneficiary, may elect to directly rollover an eligible distribution to an IRA, a Roth IRA or an individual retirement annuity under Code Section 408(b) that is established on behalf of the designated beneficiary as an inherited IRA, pursuant to the provisions of Code Section 402(c)(11). In order to be able to roll over the distribution, the distribution otherwise must satisfy the definition of eligible "rollover distribution". In addition, the determination of any required minimum distribution under Code 401(a)(9) that is ineligible for rollover shall be made in accordance with IRS guidance.

(2)

"Eligible retirement plan." An eligible plan is an IRA described in Code Section 408(a), an individual retirement annuity in Code Section 408(b), and annuity described in Code Section 403(b), an eligible plan under Code Section 457 that agrees to separately account for such transferred amounts and which is maintained by a state, political subdivision of a state or an agency or instrumentally of a state or political subdivision of a state or a qualified trust describe in Code Section 401(a) that accepts the distributee's "eligible rollover distribution". For distributions made after December 31, 2007, an eligible retirement plan shall include a Roth IRA as defined under Code Section 408A. The definition of eligible retirement plan shall also apply in the case of a distribution to a surviving spouse, or a spouse or former Spouse who is the alternate payee under a court order.

(3)

"Eligible rollover distribution." An eligible rollover distribution is any distribution of all or any portion of the participant's benefit, except that an eligible rollover distribution does not include: any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy), of the distributee or the joint lives (or joint life expectancies) of the distribute and the distributee's designated beneficiary, or for a specified period of ten years or more; any distribution to the extent such distribution is required under Code Section 401(a)(9); the portion of any distribution that is not includible in gross income (determined without regard to the exclusion for net unrealized appreciation unrealized appreciation with respect to employer securities); and any distribution made to satisfy Code Section 415.

(4)

"Direct rollover." A direct rollover is a payment by the plan to the eligible retirement plan specified by the distributee.

(Code 1958, § 25-72; Ord. No. 844, § 1, 11-28-95; Ord. No. 901-B, § 4, 5-23-00; Ord. No. 924, § 1, 7-10-01; Ord. No. 952, § 3, 7-23-02; Ord. No. 999, §§ 7, 8, 4-10-07; Ord. No. 1039, §§ 2—5, 5-10-11; Ord. No. 1075-2016 , § 2, 2-23-16; Ord. No. 1078-2016 , § 1, 7-26-16)